Optimistic Signals
Allianz has launched an extensive share buyback program amounting to up to 2 billion euros. This program was initiated in the first quarter of 2025 and demonstrates the company’s commitment to supporting the stock price. In the week from May 19 to May 23, 2025, a total of 216,240 shares were purchased, resulting in a total of 2,090,773 shares bought back since the program’s start.
Another positive aspect is the record operating result in the first quarter of 2025. With an operating profit of 4.24 billion euros, an increase of 6.3% compared to the previous year was achieved. This success marks a new record level and confirms the company’s positive outlook for the entire year.
Moreover, Allianz has reaffirmed its annual outlook and expects an operating result between 15 and 17 billion euros for 2025, indicating a stable balance sheet. This is complemented by an increase in dividends to 15.40 euros per share, an 11.6% rise compared to the previous year.
Worrisome Signals
Despite the encouraging data, there are also worrisome signals. The subsidiary Allianz Trade warns of a drastic deterioration in the German economy. A rise in corporate bankruptcies of 11% is expected for 2025, indicating economic uncertainties.
Additionally, market volatility could influence the stock price. Despite the stable balance sheet, general economic uncertainty may pose a challenge. However, Allianz emphasizes that there are only minor sensitivities to such factors.
Overall, the Allianz stock shows an optimistic outlook through its massive share buybacks and strong operating results, while the economic uncertainty calls for caution.